ITO President comments on the change at the CBRT

The governor of the Central Bank of the Republic of Turkey (CBRT) changed in recent days. Istanbul Chamber of Commerce (ITO) President Şekib Avdagiç commented on the change in the CBRT presidency while in Paris for Texworld 2024.

Stating that the economic administration currently has an economic policy package in place, Avdagiç reminded that the policy set put forward by the outgoing former CBRT Governor Hafize Gaye Erkan and her 3 deputies was consistent with the economic policy of the Ministry of Treasury and Finance and the government.

"WE DO NOT THINK THERE WILL BE A DEVIATION IN ECONOMIC POLICY"

"Of course, the departure of Central Bank governors in such a short time is not a very desirable issue," said Avdagiç, adding, "Ultimately, the fact that a deputy who shares the same school of thought and consensus has started as governor gives a strong signal that the same policy set will continue. We do not foresee any deviation or change in the economic policy of the Ministry of Treasury and Finance and the Central Bank."

Pointing out that the markets' initial reaction to the change of governor was not very harsh, Avdagiç said, "One of the most important issues after the sudden change was what its reflection on foreign exchange prices would be. There was no fluctuation over the weekend. The process continued in a very stable and horizontal course. Although the exchange rate is not the only indicator, it is an important indicator in the short term. Therefore, we see that the current economic policy will continue exactly as it is after the change, and we do not foresee a negative reflection in the market."

Evaluating the first statement made to the public by the new governor Fatih Karahan the other day, Avdagiç emphasized that this was a clear sign that the policy implemented to date would continue, saying, "According to some commentators, it is even expected that the new governor will follow a slightly more hawkish policy."

News Source: 12punto